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What College Items Can I Use as a Tax Write-Off?

Tuition and fees are above-the-line deductions for federal income taxes.

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Rising costs of tuition and other higher education expenses make federal income tax breaks for college costs attractive for many households. In addition to pre-college savings plans, these tax write-offs can reduce annual income tax obligations as well as adjusted gross income. Lower adjusted gross income results in more financial aid for a student. Tax write-offs include credits and above-the-line deductions for books, tuition and fees and student loan interest deductions.

Tuition and Fees Deduction

A tax deduction for tuition and fees of up to $4,000 is available to single taxpayers with an adjusted gross income below $65,000 and to married couples filing jointly with an AGI of less than $130,000. The deduction is reduced to $2,000

for singles with an AGI of between $65,001 and $80,000 and married couples filing jointly with an AGI of between $130,001 and $160,000. This deduction is also reduced if you use other tax-advantaged education funds to pay your schooling costs. Take the deduction directly on Form 1040 or 1040A, without having to itemize deductions on Schedule A. Married couples filing separately cannot claim this deduction.

Student Loan Interest

College loan interest may also be written off, subject to certain income restrictions. For single taxpayers with an adjusted gross income of less than $60,000 or married couples filing jointly with an AGI of less than $125,000, the maximum write-off is $2,500. This amount is phased out at an AGI of $75,000 and $155,000, respectively, for singles and married couples filing jointly.